Kapil 13 July 2021

Covid: will bank file emi bounce cases us 138 ni act?

As per this Business Times newspaper on NACH data,

In April, of the 85.4-million auto-debit transactions initiated, 56.3 million were successful, while 29.08 million failed, which make up for 34.05 per cent of the total transactions.

Therefore, my question: Is Judiciary ready to handle such a huge amount of cases and the primary question is, will the banks file such a large number of cases during coronavirus? Are prisons ready to take in such convicts?

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Quick Summary

With a significant rise in failed auto-debit transactions due to Covid, this discussion explores the potential increase in cheque bounce cases under Section 138 of the NI Act. It questions whether banks will file a large volume of cases and if the judiciary is prepared. The response clarifies that not all failures lead to cases, as banks have decision-making processes. It also highlights Supreme Court suggestions to streamline trials for multiple bounces, aiming to manage the anticipated caseload.

2 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 13 July 2021

There is no need for every cheque bounce or auto debit failure doesn't automatically result in a case under Section 138. Banks have robust decision making machinery and they take decisions on case to case basis.

G.L.N. Prasad (Retired employee.) 13 July 2021

The Supreme court has directed Govt to implement certain suggestions and the similar cheque bounces for 12 months can be clubbed as one case, and the Court can commence direct trial, consider the documentary evidence and summoning etc were exempted. Both SC and Govt are aware of the burden, we can expect such implementation of some suggestions by SC.